Jay, if I was a banker, I would be enthusiastically getting into the gold business. Just as they are:
<Gold expert Yu Jiahua said that the gold market opened a new channel for banks to make intermediary business and provide a potenial growth channel for banks to increase income. He said that the participation of commercial banks in gold trading not only activated the market, but also balanced the gold price.
Industrial insiders said commercial banks are making preparations for individuals to participate in gold speculation.... >
Note they are not holding loads of gold for their own purposes. It's to fleece the mystical Asian Aztecs many of whom are thinking Gold's Great [GG].
With the margins I was quoted by Johnson Matthey and the marketing strategy they had, it would be negligent of banks to not be in the business if they can get crowds of people to start trading. It's closely aligned with their existing business, they have the customers already in the shop, they have vaults, accounting systems, account management, legal and other skills all set up. Why on earth would they not be in the business.
Heck, if I was them, I'd be minting coins, marketing gold art [pictures, sculpture and other added value styles]. I'd start selling platinum too.
How much demand that will stimulate, I don't know, but it will be some. If the bid/ask spread was much less than I was quoted, I would certainly have bought some gold when I went to check it out. Especially if the other marketing aspects, security and so on were all okay. They made it too hard and expensive to move in and out.
Mqurice |
